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I am demotivated...

  • #1
  • First Post: Aug 5, 2010 3:22pm Aug 5, 2010 3:22pm
Yeah, I am.
Not that you would care about it.

It's been a couple of years now for me on Forex, not that 2 years is much, actually i know it's nothing, but I'm afraid that I won't get anywhere from here.
I am at the second step of those "famous 5 steps" quoted somewhere in the forum. I know that... I don't know.

To tell the truth, this tool actually gave me a big hand:
I can't remember how it was called, I just call it "Strenght meter", I programmed the one I use, but I got the idea from a link somewhere here on forex factory and i think the creator was Henry Liu or something like that. Anyway, that tool measure the general strenght of a currency, like an index, and if you compare high scores currencies with low score ones you can actually see some good up/down trends.
But... yea there's a but. I actually don't know how to use this nice tool i have in my hands. I lately used it to decide what pair to trade, the most rising currency against the most falling one...

I don't know, I don't have rules to follow and I'm lost, I'm not still able to create my own rules. I'm good at money management, it's not that I'm loosing too much (I have an account with 100€ on it, so it's not big losses, but it still is real money), I'm not risking much, I'm not cutting my wins or letting my losses go, etc etc. I'm kinda... balancing my losses with my wins, breakeven. And I'm happy with that, I'm proud of myself for this.
But I can't move from here. I'm not able to.

Actually, I stopped reading the trading systems section, 'cause 'till 6 months ago I was a "Systemhopper", jumping from a strategy to another. I decided that I needed to create myself a method using all the good knowledge i had found here. So i started reading the trading discussion, broker discussion and rookie discussion sections, a little bit even the journals one.
I don't use indicators if not created by me, and, even those, never modify the actual price with strange formulas.
I tend to not give much importance to timeframes.
Never tried scalping or something like that, I just know it doesn't suit me.
I don't know what else to say if not that, again, I'm lost. I need some light.
Can you help me? Give me a hand somehow?

Thank you forexfactory.
Regards,
scott89
  • #2
  • Aug 5, 2010 3:50pm Aug 5, 2010 3:50pm
Why don't you

A: take what you have learned that works from the systems that you have used
and create your own system.

B: Start reading news. (economic reports and forecasts) pick a pair and learn what all the reports are that are important for both nations in the pair.
Forex is not all technical. Read until you are blue, then go an make a trade based on what you have read and then look at the technicals
for setup entry exit risk/reward.

C. Try longer term swing trades.

Just throwing some stuff out there.
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #3
  • Aug 5, 2010 4:21pm Aug 5, 2010 4:21pm
Should i pick 1 or 2 pairs and "learn" them?
That'd mean less possibilities in exchange of deeper knowledge for the pair.

edit1: Thanks for the reply dude!
  • #4
  • Aug 5, 2010 4:29pm Aug 5, 2010 4:29pm
At least BE isn't loosing it all. If you're averaging 50% pip wins/loses, then it seems you're just as good off making uneducated guesses to which way a pair would run. That being said, any "systems" you've used aren't really implemented properly or aren't good systems.

You say you've only used self-made indicators? Maybe look at some trend or volume indicators and do your own research. Watch and learn the charts, know your trades, know your exits, know when/if to stop out, don't just watch the charts move.

A couple points to add to the ones above...

Time-frames are your friend. You may want to short on a 5min chart, but a 15min may reveal the contrary. Think of the periods of trend, there are only two axes on a chart, and time is one of those.

Focus on some trader journals and follow their trades. Get to know some different methods that work for others. But know them, don't depend on them -it's your money after all.

The motivation you need must come from you, not us, it's you who wants to trade, right? If not, try a new hobby. You sound depressed and in search of vindication, maybe what you need is a break. The choice is yours.
  • #5
  • Aug 5, 2010 4:42pm Aug 5, 2010 4:42pm
Quoting sqrt(-1)
maybe what you need is a break.
That's what I've done in the past 2 weeks, and it helped a lot, and i don't feel ready to go back yet, i posted this just to have some new ideas, some light.

Quoting sqrt(-1)
You say you've only used self-made indicators?
I used to have my charts full of indicators such as RSIs, MAs, MACDs, etc...
I took off all of them, and I try to keep the screen as clean as I can.

Quoting sqrt(-1)
Watch and learn the charts, know your trades, know your exits, know when/if to stop out, don't just watch the charts move.
I guess that's my problem, I still have to find what are my trades, my exits and my stops.

Thank you for your answer, It might not solve my problems, but at least it keeps a finger pointed on what's important.
  • #6
  • Aug 5, 2010 5:02pm Aug 5, 2010 5:02pm
http://www.forexfactory.com/showthread.php?t=2331

Read the whole thing and then read it 5 more times. If you can't do that, you won't become a trader IMO. It really is that simple and more than likely, you are overcomplicating things until they are just frustrating.
I dream, therefore I become.
  • #7
  • Aug 5, 2010 5:49pm Aug 5, 2010 5:49pm
Quoting mike w
http://www.forexfactory.com/showthread.php?t=2331

Read the whole thing and then read it 5 more times. If you can't do that, you won't become a trader IMO. It really is that simple and more than likely, you are overcomplicating things until they are just frustrating.
Mike, thats what I was gonna recommend.

First, scott89, you need a break and 2 weeks will not cut it. try taking a quarter (3 months) off to clear you mind completely of trading.

As Mike said, it sounds as if you're over complicating trading. 98% of those systems in the Strategy section are way overly complicating. If you have one indicator on your chart, you've got too much going on with your trading. Part of the reason for the long vacation I suggest, is the same reason for your charts to be clean and clear of any distractions.

When you begin your trading in the mornings, the only thing you need to ask yourself is: should I buy or should I sell? And why? Thats pretty much what trading is. If you can't make logical judgments on market direction then you need not trade. Make a decision on direction and protect your idea with a protective stop (just in case you're direction was wrong). Thats all trading is. Start off with the basics then move to more advance, such as reversal bars and timing entries/exits.
  • #8
  • Aug 5, 2010 6:38pm Aug 5, 2010 6:38pm
seems like you already have a decent system. The fact that you're breakeven means you have to let that winners run a little more. It takes a little practice to anticipate 'hit levels'. These are areas you 'know' traders have put their orders on and just waiting for you. I tend to let my trades run for 3-5x the risk. Use round numbers, current day's high/low, and congestion zone to for your targets.
  • #9
  • Aug 5, 2010 8:13pm Aug 5, 2010 8:13pm
Remember that trading is about finding a statistically PROVEN edge.

This means you have to backtest your system to determine if it has an edge before you trade it or at least trade it with a small amount.

When you have a statistically proven/ high probability system all emotion and mysticism is removed (which is an oasis).

"If you know yourself and know the market you fear not the result of a thousand trades" erikte279/ sun tzu


Quoting scott89
Yeah, I am.
Not that you would care about it.

It's been a couple of years now for me on Forex, not that 2 years is much, actually i know it's nothing, but I'm afraid that I won't get anywhere from here.
I am at the second step of those "famous 5 steps" quoted somewhere in the forum. I know that... I don't know.

To tell the truth, this tool actually gave me a big hand:
I can't remember how it was called, I just call it "Strenght meter", I programmed the one I use, but I got the idea from a link somewhere here on forex factory and i think...
Annoying Precision
  • #10
  • Aug 5, 2010 9:15pm Aug 5, 2010 9:15pm
Quoting scott89

It's been a couple of years now for me on Forex, not that 2 years is much, actually i know it's nothing, but I'm afraid that I won't get anywhere from here.
I am at the second step of those "famous 5 steps" quoted somewhere in the forum. I know that... I don't know.
...I don't know what else to say if not that, again, I'm lost. I need some light.
Can you help me? Give me a hand somehow?




Here's some advice just off the top of my head.

1. Maybe you need to change
your system or you need to adapt your system to your temperament.
Do you need to check the charts every day? Do you need to watch
them ALL DAY? Or can you place a trade in March and just ride
the trend for days or even weeks?

2. People are making money off this racket. Once they consistently
make more than they lose, they can pay off their student debt,
their car loan or even their mortgage on a place like this. Or this,
if you're not quite ready for a mansion.

3. I think the unemployment situation is worse than the official
figures are telling us. (Google "shadowstats" if you don't believe me.)
So pursuing forex in your spare time is a great idea; it's more than
most people are doing to improve their lives.

4. Remember the rule about not risking more than 2% of your
available equity (in your account) on a trade.

If you need a new approach, I'll throw in some .pdf reprints. Maybe
you'll find a new strategy in there.
Attached File(s)
File Type: pdf SFO - Trading with Clouds (Ichimoku) - Dolan - March 2008.pdf   163 KB | 917 downloads
File Type: pdf A+ TAS&C - Volatility Patterns 40-100 pips per trade (TAS&C).pdf   344 KB | 2,079 downloads
File Type: pdf TAS&C - Foreign Exchange as the Trader's Alternative - Mark Galant (4 pgs).pdf   136 KB | 445 downloads
File Type: pdf A+ FUTURES - Fundamentals article (futures mag) Jan 2007.pdf   270 KB | 524 downloads
HELL IS EMPTY, ALL THE DEVILS ARE HERE. -- Shakespeare
  • #11
  • Edited 11:00pm Aug 5, 2010 10:31pm | Edited 11:00pm
I would like to add my 2 cents if I may...

I can relate to the way you are feeling I remember very distinctly reaching a point where I felt I had wasted the last year or 2 as I came to the realisation that "I just dont know". It was quite a hollow feeling to have and like you describe I too was frozen and very unsure about where to go next. Believe me I completely can relate to what you're feeling like right now.


Exactly what is it that you dont know?

i think a lot of the posts above have focused on the "system" side of things and although tis is of course important do you believe that this is the real issue here?

All I can say is reaching this point is progress in itself

A break to clear your head may be a good idea.

Anyway I cant say for sure what brought me good in the end and I am still learning everyday but I think this stalemate provoked me into taking a different approach and thinking about things from another angle.

Winners never quit and quitters never win - Perseverence is key.
Time hides Nothing
  • #12
  • Aug 5, 2010 11:40pm Aug 5, 2010 11:40pm
currecy meter which u are talking about by henry liu is a total waste of time,coz if u take a position based on that meter suddenly every thing will go against you in no time...try some thing more concrete like trendline and support and resistance lines and trade with minimum indicator or no indicators.
  • #13
  • Aug 6, 2010 2:52am Aug 6, 2010 2:52am
hi scott,

here is something from my own experience:

start with one pair, stick to it for at least a month

pick a timefrime or two, use only these for decision making
(for instance: M5 (trade)+H1(direction,SR))

you shouldn't use any indicator at all, not even trendlines

make a routine, for example

if you trade the M1 or M5, trade one to four hours every day at the same time
if you trade the M15, M30 or H1 look at the beginning of every hour at the chart to make a decision
if you trade H4 or above look once in the morning and once in the evening

don't read the news or forexfactory while trading, it's a distraction

trade with smallest amount possible (if not paper trade), you want to get better at trading, so you need to learn the technique first, then you can throw money at it, that is when it's boring for you, in that case paper trade for a week or two more, then put money on the line, but do it little by little

how you trade is up to you to find out, just keep it simple and don't look for systems from other people, however, you can use ideas from them, but make your own system, try it and see what you get, don't be rigid, adapt it, change something if it doesn't feel right, but keep your focus on learning to do it right

when you made a decision, stick to the plan, don't change the plan (trade) after execution, wait for the results

punish yourself accordingly for not being disciplined (like not ordering food for a week, if you like that ) reward yourself accordingly if, and only if, you do (chockolate ) ... not excessive of course
if you've gotten to far off course, you need to stop and find out what you problem is

keep a journal, and i don't mean a trade journal (your trading platform can do this) but rather a traders journal, write down new insights you found out yourself, your aha moments

believe you can do it on your own, overall give yourself time to become what you want to be, but you need to push yourself while you are doing it

never give up, always come back stronger

regards
Invincibility lies in the defence, the possibility of victory in the attack
  • #14
  • Aug 6, 2010 3:11am Aug 6, 2010 3:11am
and

you should have answers to these questions (aka your rules):

when to enter
where to put the stop loss
when to move the stop loss
when to exit part of the position
when to exit full position
when to add to the position
when not to trade
Invincibility lies in the defence, the possibility of victory in the attack
  • #15
  • Aug 6, 2010 3:28am Aug 6, 2010 3:28am
I think there's some useful info. in the 1st post of J16, but IMHO, instead reading almost 5K pages of that thread, better to come up with your own system.

Quoting mike w
http://www.forexfactory.com/showthread.php?t=2331

Read the whole thing and then read it 5 more times. If you can't do that, you won't become a trader IMO. It really is that simple and more than likely, you are overcomplicating things until they are just frustrating.
  • #16
  • Aug 6, 2010 4:14am Aug 6, 2010 4:14am
for making your rules, i'll attach the daily morning read (as an example)
it's from a link in a post i don't remember so i can't give credits, sorry

here's a thread with a trading plan template

hope this will help
Attached File(s)
File Type: doc ryan_'s.doc   32 KB | 398 downloads
Invincibility lies in the defence, the possibility of victory in the attack
  • #17
  • Aug 6, 2010 4:46am Aug 6, 2010 4:46am
Thank you all guys for all the useful informations and links.
Just 1 question: do you think it's possible to soccesfully daytrade? Not that I'm gonna start from there, I thought to start more from something like position trading, but daytrading would be my target.
  • #18
  • Aug 6, 2010 4:55am Aug 6, 2010 4:55am
Quoting scott89
Thank you all guys for all the useful informations and links.
Just 1 question: do you think it's possible to soccesfully daytrade? Not that I'm gonna start from there, I thought to start more from something like position trading, but daytrading would be my target.
No. Stick to the higher timeframes until you're profitable for the next few years.
  • #19
  • Aug 6, 2010 5:00am Aug 6, 2010 5:00am
Quote
Watch and learn the charts, know your trades, know your exits, know when/if to stop out, don't just watch the charts move.

Quote
I guess that's my problem, I still have to find what are my trades, my exits and my stops.

sqrt(-1) well said it, and you just emphasized that it is your problem, so your solid strategy is your friend, looks like you haven't your friend yet as you don't know your trades, exits and stops which are parts of strategy...these three are simply important and essential, while you don't have em you get nowhere


Daytrading not only can be successful but can be great too.
hello
  • #20
  • Aug 6, 2010 8:02am Aug 6, 2010 8:02am
Nothing again system traders but i wonder if robots will take over our life and someday do our surgery as well replacing 'doctor grey matter'.

All i know system trading/technical analysis is made possible through large computing power after 1980s.

I always feel the 'originality' of trading is discretion trading using brain grey matter.

The pattern recognition numbers game which Jesse Livermore (Under similar conditions, human will react similarly) talked still works and will work till infinity.

However, to become a world class discretion trader is equivalent to becoming a doctor or engineer- thats the kind of effort and time it takes.
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